New Pension Calculator

[Lima Juliet]

Al

With my income, I must pay 30-odd percent now

First £6k is free (I had a little underpayment last year!)
The next £30-odd at 20%
The last £30-odd at 40%

LJ

[Al R]

Leon,

You'll pay far more than that; don't forget that NIC masks the headline rate. Higher rate National Insurance was doubled in 2011 to 2% for higher-rate tax payers (on top of the 12% contributions deducted from earnings below that level).

In 1973 - income tax made for interesting reading. Standard rate of income tax was 38.75% with earned income relief of two-ninths up to £4005 and then 15%. Single person tax free allowance was £460, married couple £600. Single person tax on earned income of £1000 was (on average) 12.3%. Tax on earned income of £10,000 was 38.6% and tax on earned income of £100,000.. well, 71%.

Unearned income £1000 was 20.9%, £10,000 58.8% and £100,000 85.5%. Married couples with children had higher tax free thresholds.. not surprising there was a brain drain with income taxes at these sorts of levels. As a rough guide, £1000 in 1973 is now £10,400, and married women's earnings were added on to those of her husband.

[Could be the last?]

I expect to be in the minority with the following but would like some feedback if anyone is considering this:

I am looking at applying for PA, but before I do I am trying to workout what the financial benefits would be. I have put my figures into the New Pension Calc and the difference between my 75/15 pension readout and the readout from the PA conversion is miniscule. There is a caveat in the small print about the accuracy of the calculator for those transferring under the new system, and it refers to a manual application to SPVA. Unfortunately, I have already had my entitled printout from the SPVA for this year, so before I payout another £70, just wondering if anyone has any top tips or info that would shed some light on this?

[Willard Whyte]

I can only advise that you base your decision on whether to stay or leave on how much you enjoy the job, because until, if, you leave you will not know how much you miss the mob - or why the hell you didn't leave years ago.

I got the boot, but for me the grass is now greener from a quality of life perspective - I've never been as happy at work or as motivated to pitch up at some ungodly hour as I am now. For others it will be the exact opposite.

Good luck, whatever you decide. Just don't decide on pension alone.

[The English Passenger]

By the way, you can't apply for PA. It is boarded just like promotion and you are offered it.

[The English Passenger]

Wasn't aware of that.... But I never even had aspirations to the worst rank in the RAF, being a PAS Flt Lt suits me fine!

[Could be the last?]

Willard,

Thanks for your advice, the pension will not be the only factor but it is in the top 5!! I was surprised when I ran the figures through the calc, as I was expecting a bigger difference - but in true SPVA fashion if you have had your one shot then you have to wait 12 months/£70 for the next readout, which is a pain as it will be after the next PA board.

High Spirits,

You are correct.

[MechGov]

I thought that a Sqn Ldr going PA is dooming themselves to a never-ending series of ground tours that manning can't fill. Just saying....

[Just This Once...]

Mech I fear you are correct and unless Manning wake-up to the idea of rotating PAS sqn ldrs through flying tours it will find itself with guys voting with their feet because it will be the only way to break the circle of ground tours.

Manning needs to take a hard look at itself. Punitive RoS and punitive posting policies may appear attractive measures for immediate need but in truth it is just driving people out of the Service. Manning have got themselves in a viscous circle of their own making.

If Manning really does have anyone who thinks the average military aircrew chap will sit happily at a desk for 20+ years with no promotion opportunities and no chance to become current again then they need shooting.